Survey on Business, Accounting and Financial Studies(BAFS) Senior Secondary Schools F4-F6

1. Survey on Business, Accounting and Financial Studies(BAFS)Senior Secondary Schools F4-F6

2. Interpretation of Introduction to Accounting By Eric, TAI Ming-kee

7. Recording, classifying, summarising and communicating data • Recording, classifying, summarising and communicating data

8. Users of accounting information (owners, managers, potential investors, bank, suppliers and government) • Uses of financial statements (show financial performance of business, provide useful and relevant information) • Limitations of financial statements (show quantitative information and past record only)

9. Business entity : Legal entity versus accounting entity • Accrual : Cash basis versus accrual basis • Historical cost : Open market value and net realizable value • Going concern : Relationship between historical cost and going concern • Consistency : Accounting bases versus accounting policies

10. GAAP in accounting module AL Syllabus • Stable monetary unit • Uniformity • Disclosure • Relevance • True and fair view • Money measurement • Prudence • Materiality • Realisation • Matching • Objectivity • Timeliness • Substance over form

12. Double entry system • Basic accounting elements (assets, liabilities, capital, income and expenses) • Relationship between accounting elements and accounting equationAssets = Capital + LiabilitiesAssets + Expenses = Capital + Liabilities + Income • Effects of business transactions upon the accounting equation and balance sheet • Debits and credits and their rules

14. Books of original entry and different types of ledgers • The needs of books original entries (recording, classifying and summarising various business documents) • Recording transactions by double entries using ‘T’ form and running balances and explaining the different nature of debit and credit balances • Classification of ledgers (personal, real and nominal accounts) • Division of ledgers (post to sales ledger, purchases ledger and general ledger) • Explain how the books of original entries are related to the double entry system

15. Identify errors, provide information for preparing financial statements • Errors affecting or not affecting the balancing of a trial balance • Relationship between trial balance and accounting equation

16. Strategy to calculate the cost of goods sold • Balance sheet classifications: order of permanence and liquidity, current and non-current distinction

17. Current and non-current distinction

18. Current and non-current distinction

19. Assessment of financial performance and position • Making comparisons: Internal versus External, Relative versus Absolute

20. Accounting Module • Inventory turnover • Days’ sales in accounts receivable/Accounts receivable turnover • Days’ purchases in accounts payable/Accounts payable turnover • Total assets turnover • Gearing • Earnings per share • Price earnings ratio • Dividend cover

21. 1. Changing mode of assessment Paper 1 (Compulsory part) Time allowed: 1.25 hours Question types: • Multiple-choice questions (some will be set on cases and data responses and carry a heavier weighting) • Short-answer questions

22. Multiple choice • A growing practice of examining boards is to set multiple choice questions in accounting. In fact, this has become so popular with examiners that all the largest professional accounting bodies now use them, particularly n their first level examinations • Multiple choice questions give an examiner the opportunity to cover large parts of the syllabus briefly, but in detail. Students who omit to study areas of the syllabus will be caught out by an examiner’s use of multiple choice questions. It is no longer possible to say that it is highly probable a certain topic will not be tested – the examiner can easily cover it with a multiple choice question.

23. CE 2006 Section A Question 3

24. CE 2005 Section A Question 2

25. 2. Teaching arrangements

26. The End